Human Resources
Executive Compensation - Relative Total Shareholder Return: Myths and Realities

Executive Compensation - Relative Total Shareholder Return: Myths and Realities


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This paper addresses the myths and reveals the realities of relative total shareholder return (RTSR)—one incentive form that is getting substantial attention, in part because it is the only measure of performance used by ISS and Glass Lewis in their pay-for-performance evaluations and it sounds logical. Understanding the seven myths and realities of RTSR compensation plans will help both senior managers charged with developing executive compensation plans and compensation committee members charged with evaluating the merits of those plans determine whether relative total shareholder return is 1) the replacement for stock options; 2) a valued component of a total executive compensation approach; or 3) just not the right fit for your company.

Download Executive Compensation - Relative Total Shareholder Return: Myths and Realities 

For those compensation professionals that want more information on this topic, Aon Hewitt also created a supplement document that provides additional explanation.

Download Executive Compensation - Relative Total Shareholder Return: Myths and Realities: The Detail 

Executive Compensation Publications